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France is Pissed About German Ban on Naked Shorts

France is none too pleased with Germany’s unilateral action yesterday to ban bearish bets on certain financial companies and European government’s bonds. Christine Lagarde, the French finance minister blasted the Germans for stepping out of school yesterday, a move she thinks could dampen liquidity on the European bond market.

Lagarde has ruled out imposing its own ban on naked shorting, however it is still enforcing a ban on shorting certain financial stocks that was put in place in September 2008. Sweden and the Netherlands also came out against the Germans yesterday.

“I think we should really request the views of those governments affected by this measure. We did not envisage doing this. And for liquidity reasons, it is useful to continue functioning without banning short selling,” she said.

Backlash builds against German ban []


Germans Ban on Naked Short-Selling Just Fueling More Fear

Say “auf Wiedersehen” to naked short selling in Germany. Because of “exceptional volatility” in euro-area government bonds and credit-default swaps, massive short-selling was leading to excessive price movements which “could endanger the stability of the entire financial system,” Germany’s BaFin financial services regulator said today.

Carl Levin is Seriously Pissed at the Swiss

Senator Carl “Shitty Deal” Levin has blasted the Swiss government withholding the names of withholding the names of certain UBS clients suspected of opening Swiss bank accounts to evade U.S. taxes. The Swiss lower house voted today to reject a U.S.-Swiss treaty that would have turned over about 4.450 out of the 52,000 UBS clients the Uncle Sam suspects of tax evasion.